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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
SYS-CON.TV
Deducting Moving Expenses at Tax Time
The Canadian Association of Movers (CAM) gives advice to consumers about claiming their moving expenses at tax time.

TORONTO, ONTARIO -- (Marketwire) -- 01/14/13 -- If you are moving to start a new job or to carry on a business, you may be entitled to deduct some of your moving-related expenses. The major criterion for eligibility is that the new residence must be a minimum of 40 kilometers closer to the new place of work or school. At the present time, the Canada Revenue Agency (CRA) still contends that new location means a "new" employer. There have been a couple of recent tax appeals that have challenged this rule but, to date, no legal precedent has been established, so moving closer while staying with an existing employer does not qualify according to the CRA.

Eligible moving expenses can be deducted from the employment income or self-employment income earned at the new location after the move is completed. If your net moving expenses that you paid in the year of the move are more than the eligible income earned at the new work location in the same year, you can carry forward and deduct the unused part of the expenses in the following year.

If you received a reimbursement or an allowance from your employer, you can only claim your moving expenses if you include the amount received in your income or if you reduce your moving expenses by the amount received.

If you are a full-time student who moves to attend a qualified educational institution, you may also be able to deduct some moving expenses from specified income. For more information for students, obtain a copy of pamphlet P105, Students and Income Tax, from the forms and publications section of the CRA website.

Moving related expenses that can be claimed include:


--  transportation and storage (such as packing, movers loading and
    delivering the shipment, in-transit storage and cargo protection
    premium) for household effects; 
--  travel expenses, including vehicle expenses for the trip related to your
    move; 
--  temporary living expenses up to a maximum of 15 days for meals and
    temporary accommodations; 
--  cost of cancelling your lease for your old residence; 
--  incidental costs related to your move, including changing of address on
    legal documents, replacing driver's licenses and utility disconnection
    or reconnection; 
--  cost to maintain the vacant residence up to $5000, for the cost of
    interest, property taxes, heat and utilities, etc., while the residence
    is vacant when reasonable efforts were made to sell the home; 
--  cost of selling the old residence, including advertising, real estate
    commissions, legal fees, etc.; 
--  cost of purchasing a new home - you can claim legal fees.

For further information: For complete details on claiming moving expenses, visit www.cra-arc.gc.ca - choose the forms and publications menu for information on moving and form T1-ME(12). For information on moving, contact the Canadian Association of Movers, Canada's moving industry trade association. CAM helps consumers by identifying good movers and monitoring movers' performance. Consumers should contact CAM at 1-866-860-0065; visit CAM's website, www.mover.net; fax enquiry to 1-866-601-8499; email to admin@mover.net; mail to PO Box 30039, RPO New Westminster, Thornhill, ON, Canada L4J 0C6.

Contacts:
Canadian Association of Movers
1-866-860-0065
1-866-601-8499 (FAX)
admin@mover.net
www.mover.net

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